Chinese Foreign Ministry spokesman Kong Quan said Tuesday that the central government of China strongly opposes Taiwan's adding the word "Taiwan" to the cover of its new passports.

It is reported that the Taiwan authorities had taken the move to avoid confusion.

Kong said the interpretation is unacceptable to the central governmnent of China.

He said adding "Taiwan" to the cover of its passport is an example of Taiwan's attempt to seek the "gradual independence of Taiwan" and another serious step to damage cross-strait relations.

Speaking ahead of today's meeting between Premier Wen Jiabao and US Treasury Secretary John Snow, where the renminbi exchange rate issue is expected to be discussed, Kong said China will maintain the stability of its currency,.

"China will continue to maintain the stable situation of its foreign exchange rate,'' Kong said.

"The stable exchange rate of the renminbi is conducive to the economic stability and development of China, Asia and the world,'' he added.

China has adopted a regulated, floating exchange rate mechanism based on market supply and demand since 1994, Kong said.

The mechanism will be improved in line with the country's development, he added.

International Monetary Fund managing director Horst Kohler said in Beijing yesterday that he agreed with China's caution on the issue of adjusting the international exchange rate of China's currency.

He also urged the international community to remember the contribution that China's exchange rate policy made to the regional and world economy during the Asian financial crisis.

In response to a question on the Dalai Lama, Kong said the door for Dalai Lama to contact the central government is open as long as he abandons his separatist activities and acknowledges that Tibet and Taiwan are inalienable parts of China.

When asked to comment on the report that Japan will offer money to victims of the gas leak in Qiqihar in Northeast China's Heilongjiang Province as a token of sympathy, Kong said China has been in consultation with Japan over this issue and has urged Japan for a proper and early settlement.

The gas leak which occurred on August 4 left over 40 victims, including one death.

Li Guizhen, a 31-year-old construction worker died last month from sustained serious burns caused by highly toxic mustard gas leak which was traced to chemical weapons left behind by invading Japanese troops during World War II.